Local expert information sourcing at international market entry

Activity: Talk or presentationScience to professionals/public


Firms build up subsidiaries abroad to serve customers with a comprehensive business model. However, in the moment of market entry, foreign investors lack information to make entrepreneurial decisions on location. This study investigates the use of local experts as business consultants to close the gap of information at market entry. Information economics suggest that collaborating with local partners or imitating local competitors can substitute the information sourcing from local experts and that the investor’s international experience facilitates this process. Deploying expatriate managers or acquiring local firms, by contrast, can only complement the information sourcing from local experts unless the investor possesses international experience. Multilevel regressions on a sample of 1175 country entries by German investors support the hypotheses with the exception of collaboration with local partners. International joint ventures seem to generate need for local counseling rather than reducing it.
Period23 Jun 2016
Event title8. Wissenschaftsforum Mobilität
Event typeUnknown